Query on taxation

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..... Hi, I am from Kerala and I have a concern. The situation is like I am purchasing a web service and reselling it to my clients; still, the service provider would be the creator of the web service (I am just a link between the client and the service provider). The business is in such a way that I am getting the service for Rs. 250 per person (login) including service tax. I am planning to sell i .....

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..... t for Rs. 250. Will I have to include Service Charge in the bill to my clients? If so, how much? - Reply By Rajesh Nathoo - The Reply = Dear Mr. Laijesh , You are acting as an intermediary between main service provider and client . The amount of Service tax u have to pay depends on your status as a pure agent or not . To qualify as a pure agent under Service tax laws certain basic condition .....

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..... s are to be satisfied e.g. 1. The Service Receipient should not u are acting as an agent and who is the main service provider . 2. U should not have any control on price to be charged from service receipient . i.e. Service Receipient should clearly know how much are ur service charges and how much main service provider has charged u for the particular service . 3. There should be valid ag .....

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..... reements between u and service providers and u and service receipients which should reflect u are acting as an agent in the whole process. etc. In case u satisfy the above conditions , u are liable to pay ST on only Service Charges as main amount charged by service provider would be reimbursable in nature . i.e. In case u do not satisfy the above conditions , u are liable to pay ST on Rs 250. .....

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..... However u can take cenvat credit of ST charged by the Service Provider . - Query on taxation - Query Started By: - Laijesh Gopi Dated:- 6-1-2014 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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